President Bush calls for the establishment of a Palestinian state, reinforcing President Clinton’s commitment to a two state solution, as long as Israeli security is not jeopardized. The US Government freezes Hamas’ and Islamic Jihad’s assets in the US; EU does the same in Europe. On the 24th anniversary of Sadat’s visit to Jerusalem, Secretary of State Powell delivers a major foreign policy address on the Middle East, calling for a two state solution, and end to the Israeli occupation of the West Bank and Gaza, and cessation of all violence.